Mortgage underwriter agrees to pay DOJ $675,000 to settle False Claims Act suit

by bvernia | December 9th, 2009

Robert Corp, a Syracuse, New York, mortgage underwriter, has agreed to pay $675,000 to settle a False Claims Act suit brought by the US, DOJ announced on December 8. According to the Department’s press release:

The Justice Department filed suit against Corp in May 2008, alleging that he made false statements to HUD on an application for government insurance of a mortgage loan used to refinance the existing debt of Brylin Hospitals, a psychiatric and substance abuse hospital in Buffalo, N.Y. The mortgage insurance program authorizes HUD to guarantee mortgage loans used to refinance debt held by hospitals and other healthcare facilities. Corp allegedly overstated Brylin Hospitals’ existing debt in order to obtain a larger refinance loan, and HUD was required to pay more in mortgage insurance claims as a result of Corp’s allegedly false statements.

The case was handled by AUSA Robert Trusiak of the WD New York in Buffalo, and by Brian Young of the Civil Division’s Fraud Section.

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